Finolex turnover crosses 1000 crores

Mumbai: Finolex Industries Limited (FIL), of the Pune-based Chhabria group has turned out excellent results for the year ended 31st March, 2004 with a sharp rise in net profit at Rs. 90.16 crores, a 12.16% increase over the previous year.

Earnings per share for the year ended 31st March 2004 is Rs.7.25 (against Re.6.25 for the earlier year) and cash earnings per share is Rs. 10.71 (against Rs.9.52 for earlier year).

The company''s turnover also rose smartly indicating an increase of 16 per cent over last year''s level of Rs.871 crore. The gross income has crossed the important mark of Rs.1000 crore.

Net profit for the fourth quarter (Jan - March 2004) rose by 267 per cent to Rs.35.78 crore as compared to Rs.9.74 crore in the corresponding quarter of the previous year.

The Board of Directors has recommended a final dividend of 20 per cent in addition to the Interim dividend of 10 per cent making the total dividend as 30 per cent against 20 per cent for the previous financial year.

Commenting on the financial performance, Prakash Chhabria, deputy managing director, Finolex Industries Limited said, "Finolex has had yet another successful year operationally and financially. Margins in the PVC Resin business have improved dramatically. Demand for PVC Resin as well as PVC Pipes is very strong. Demand for pipes from the agriculture sector largely contributed to the volumes growth. Effect of a good monsoon and increased emphasis on drip irrigation by various state governments has also contributed to the spurt in demand for pipes.

He further added, "Higher demand for Finolex pipes has ensured better price realization despite increase in PVC prices. The PVC resins business too has grown by 4.5 per cent in volume terms reflecting the buoyancy in demand."